In keeping with Elop's focus on Asia-based production, Nokia's just broken ground on a new manufacturing facility in Vietnam. The site, located in the country's Bac Ninh province, spans over 17 hectacres and is slated to begin production of mobile devices when it's completed in early 2013. The move marks a shift in strategy for the Finnish company, eyeing unmet demand for smartphones in the region, an area it's deemed a "high growth [economy]." In addition to supplying that emerging market with its portfolio of products, the new plant will also help to create job opportunities for locals -- a welcome turn of fortune given Espoo's recent track record of worldwide layoffs. You can check out the presser below for additional bits surrounding its newly minted Vietnamese arm.
Published April 23, 2012 | By Nokia - Press Release
Nokia officially starts the development of its manufacturing facility in Vietnam
Reaffirming long-term commitment to the country and the company's strategy to connect the next billion to information and the Internet
Bac Ninh, Vietnam - In an official ceremony today, Nokia kicked-off the development of its manufacturing facility in Vietnam, to serve the growing demand for mobile phones all over the world. The event featured Secretary of the Central Party Committee, Vice President of the National Assembly of Vietnam, Madam Nguyen Thi Kim Ngan; Minister of the Ministry of Science and Technology Vietnam, Mr. Nguyen Quan; Ambassador of Finland to Vietnam, Kimmo Lähdevirta; and high ranking officials from Central authorities and Bac Ninh province amongst more than 200 others.
Located in Vietnam-Singapore Industrial Park (VSIP) in Bac Ninh province, the Nokia Vietnam manufacturing facility is being developed on an area of 17 hectares. Nokia expects to start the operations of this factory in early 2013.
Today's event is one step further in reaffirming Nokia's long term commitment to the Vietnam market, under Nokia's strategy to connect the next billion people to information and the Internet.
Nokia's position in high growth economies is strong, and mobile phones play a strategic role. The new manufacturing site is being established to meet the growth in demand for these phones, as well as to help Nokia to deliver a contemporary mobile experience to the next billion consumers all over the world.
"We highly appreciate Nokia's efforts in making this commitment a reality, which contributes to the growth of foreign investment in Vietnam in general and in Bac Ninh in particular. We also hope this will bring up not only economic value, but also other social benefits for the country like job creation and community knowledge enhancement on information technology alike," said Mr. Nguyen Nhân Chien, President of People's Committee of Bac Ninh province.
Mary McDowell, Executive Vice President, Mobile Phones, Nokia, said: "Thanks to the valued support from the Vietnamese government, our manufacturing program in Vietnam has been progressing well. The new Nokia manufacturing plant will produce and provide new devices for compelling and affordable, localized mobile experiences, particularly in the growth markets.
"Nokia is also committed to extending our positive reputation as an employer and as a corporate citizen. We expect to attract competent and energetic employees from the local skilled labor force. And in turn, employees at our new factory can expect a state-of-the-art facility and a positive, modern working environment with high professional and ethical standards," continued McDowell.
Nokia is making progress in its strategy to connect the next billion. The company has launched an aspirational portfolio of devices that include fresh, contemporary design and form factors that are optimized for great experiences, such as social, entertainment, and messaging, and services that extend the value proposition to consumers.
Nokia first opened its doors in Vietnam in 1996 and, like many successful multinationals, saw Vietnam as a growing market with opportunity and potential. In light of the respect Nokia has wherever it operates, the company has worked hard to quickly become part of the Vietnamese community.
Nokia currently operates two representative offices in Vietnam: one in Ho Chi Minh City and the other in Hanoi. These offices carry out marketing and promotion activities for Nokia's handset business. In 2011, Nokia established a branch office in Phnom Penh, Cambodia, increasing its footprint within the IndoChina region.
In November, 2011, Nokia established a new company, Nokia (Vietnam) LLC, to build and operate the new Vietnam manufacturing facility.